Loading...
Docoh

Lowe`s Cos. (LOW)

Document and Entity Information

Document and Entity Information - shares6 Months Ended
Aug. 04, 2017Sep. 01, 2017
Document and Entity Information [Abstract]
Entity Registrant NameLOWES COMPANIES INC
Entity Central Index Key60,667
Document Type10-Q
Document Period End DateAug. 4,
2017
Amendment Flagfalse
Document Fiscal Year Focus2,017
Document Fiscal Period FocusQ2
Current Fiscal Year End Date--02-02
Entity Well-known Seasoned IssuerYes
Entity Voluntary FilersNo
Entity Current Reporting StatusYes
Entity Filer CategoryLarge Accelerated Filer
Entity Common Stock, Shares Outstanding832,812,179

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in MillionsAug. 04, 2017Feb. 03, 2017Jul. 29, 2016
Current assets:
Cash and cash equivalents $ 1,696 $ 558 $ 1,988
Short-term investments119 100 168
Merchandise inventory - net11,407 10,458 10,604
Other current assets811 884 591
Total current assets14,033 12,000 13,351
Property, less accumulated depreciation19,762 19,949 20,274
Long-term investments360 366 604
Deferred income taxes - net328 222 250
Goodwill1,255 1,082 1,074
Other assets930 789 918
Total assets36,668 34,408 36,471
Current liabilities:
Short-term borrowings0 510 0
Current maturities of long-term debt296 795 1,193
Accounts payable8,649 6,651 7,696
Accrued compensation and employee benefits665 790 750
Deferred revenue1,450 1,253 1,285
Other current liabilities2,565 1,975 2,259
Total current liabilities13,625 11,974 13,183
Long-term debt, excluding current maturities15,788 14,394 14,618
Deferred revenue - extended protection plans790 763 744
Other liabilities929 843 904
Total liabilities31,132 27,974 29,449
Equity:
Preferred stock - $5 par value, none issued0 0 0
Common stock - $0.50 par value; Shares issued and outstanding 837 at August 4, 2017, 881 at July 29, 2016, and 866 at February 3, 2017419 433 440
Capital in excess of par value0 0 0
Retained earnings5,253 6,241 6,839
Accumulated other comprehensive loss(136)(240)(366)
Total Lowe's Companies, Inc. shareholders' equity5,536 6,434 6,913
Noncontrolling interest0 0 109
Total equity5,536 6,434 7,022
Total liabilities and equity $ 36,668 $ 34,408 $ 36,471

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / sharesAug. 04, 2017Feb. 03, 2017Jul. 29, 2016
Equity:
Preferred stock, par value $ 5 $ 5 $ 5
Preferred stock, shares issued0 0 0
Common stock, par value $ 0.50 $ 0.50 $ 0.50
Common stock, shares issued837,000,000 866,000,000 881,000,000
Common stock, shares outstanding837,000,000 866,000,000 881,000,000

Consolidated Statements of Curr

Consolidated Statements of Current and Retained Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Current Earnings
Net sales $ 19,495 $ 18,260 $ 36,355 $ 33,494
Cost of sales12,825 11,972 23,885 21,868
Gross margin6,670 6,288 12,470 11,626
Expenses:
Selling, general and administrative3,931 3,866 7,807 7,257
Depreciation and amortization357 371 722 731
Operating income2,382 2,051 3,941 3,638
Interest - net159 166 319 323
Loss on extinguishment of debt0 0 464 0
Pre-tax earnings2,223 1,885 3,158 3,315
Income tax provision804 718 1,137 1,264
Net earnings $ 1,419 $ 1,167 $ 2,021 $ 2,051
Weighted-average common shares outstanding - basic841 883 849 890
Basic earnings per common share $ 1.68 $ 1.32 $ 2.37 $ 2.29
Weighted-average common shares outstanding - diluted842 885 850 892
Diluted earnings per common share $ 1.68 $ 1.31 $ 2.37 $ 2.29
Cash dividends per share $ 0.41 $ 0.35 $ 0.76 $ 0.63
Retained Earnings
Balance at beginning of period $ 5,346 $ 7,074 $ 6,241 $ 7,593
Net earnings1,419 1,167 2,021 2,051
Cash dividends declared(344)(309)(643)(560)
Share repurchases(1,168)(1,093)(2,366)(2,245)
Balance at end of period $ 5,253 $ 6,839 $ 5,253 $ 6,839

Consolidated Statements of Cur5

Consolidated Statements of Current and Retained Earnings (Percents) (Unaudited)3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Current Earnings
Net sales100.00%100.00%100.00%100.00%
Cost of sales65.79%65.56%65.70%65.29%
Gross margin34.21%34.44%34.30%34.71%
Expenses:
Selling, general and administrative20.16%21.17%21.47%21.67%
Depreciation and amortization1.83%2.03%1.99%2.18%
Operating income12.22%11.24%10.84%10.86%
Interest - net0.81%0.91%0.87%0.96%
Loss on extinguishment of debt0.00%0.00%1.28%0.00%
Pre-tax earnings11.41%10.33%8.69%9.90%
Income tax provision4.13%3.94%3.13%3.78%
Net earnings7.28%6.39%5.56%6.12%

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Comprehensive Income
Net earnings $ 1,419 $ 1,167 $ 2,021 $ 2,051
Foreign currency translation adjustments - net of tax106 (56)105 27
Other comprehensive income/(loss)106 (56)105 27
Comprehensive income $ 1,525 $ 1,111 $ 2,126 $ 2,078

Consolidated Statements of Com7

Consolidated Statements of Comprehensive Income (Percents) (Unaudited)3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Comprehensive Income
Net earnings7.28%6.39%5.56%6.12%
Foreign currency translation adjustments - net of tax0.54%(0.30%)0.29%0.09%
Other comprehensive income/(loss)0.54%(0.30%)0.29%0.09%
Comprehensive income7.82%6.09%5.85%6.21%

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions6 Months Ended
Aug. 04, 2017Jul. 29, 2016
Cash flows from operating activities:
Net earnings $ 2,021 $ 2,051
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization768 778
Deferred income taxes(87)(25)
(Gain) Loss on property and other assets - net13 (51)
Loss on extinguishment of debt464 0
(Gain) Loss on cost method and equity method investments(87)5
Share-based payment expense55 49
Changes in operating assets and liabilities:
Merchandise inventory - net(850)(310)
Other operating assets166 84
Accounts payable2,031 1,723
Other operating liabilities580 324
Net cash provided by operating activities5,074 4,628
Cash flows from investing activities:
Purchases of investments(624)(675)
Proceeds from sale/maturity of investments789 431
Capital expenditures(476)(490)
Proceeds from sale of property and other long-term assets10 17
Purchases of derivative instruments0 (103)
Proceeds from settlement of derivative instruments0 179
Acquisition of business - net(505)(2,284)
Other - net10 (9)
Net cash used in investing activities(796)(2,934)
Cash flows from financing activities:
Net change in short-term borrowings(511)(44)
Net proceeds from issuance of long-term debt2,968 3,267
Repayment of long-term debt(2,574)(495)
Proceeds from issuance of common stock under share-based payment plans80 82
Cash dividend payments(603)(506)
Repurchase of common stock(2,503)(2,454)
Other - net(9)40
Net cash used in financing activities(3,152)(110)
Effect of exchange rate changes on cash12 (1)
Net increase in cash and cash equivalents1,138 1,583
Cash and cash equivalents, beginning of period558 405
Cash and cash equivalents, end of period $ 1,696 $ 1,988

Summary of Significant Accounti

Summary of Significant Accounting Policies6 Months Ended
Aug. 04, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting PoliciesNote 1 : Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements (unaudited) and notes to the consolidated financial statements (unaudited) are presented in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The consolidated financial statements (unaudited), in the opinion of management, contain all adjustments necessary to present fairly the financial position as of August 4, 2017 , and July 29, 2016 , and the results of operations, comprehensive income for the three and six months ended August 4, 2017 , and July 29, 2016 , and cash flows for the six months ended August 4, 2017 and July 29, 2016 . These interim consolidated financial statements (unaudited) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Lowe’s Companies, Inc. (the Company) Annual Report on Form 10-K for the fiscal year ended February 3, 2017 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. Reclassifications Certain prior period amounts have been reclassified to conform to current presentation. Accounting Pronouncements Recently Adopted Effective February 4, 2017, the Company adopted Accounting Standards Update (ASU 2016-09), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . Upon adoption of the ASU, all excess tax benefits or deficiencies related to share-based payments are recognized in the provision for income taxes, which will increase the volatility within our provision for income taxes, as these amounts were previously reported within equity. As a result of the adoption, we have recognized $1 million and $24 million of excess tax benefits in our provision for income taxes for the three and six months ended August 4, 2017 , respectively. The recognition of these benefits contributed $0.03 to diluted earnings per share for the six months ended August 4, 2017. Excess tax benefits were historically reflected as a financing activity in the statements of cash flows, and after adoption, are included within operating activities. Cash paid to tax authorities by the Company when directly withholding shares for tax purposes will continue to be classified as a financing activity in the statement of cash flows. Share-based payment expense will continue to reflect estimated forfeitures of share-based payment awards. The Company has adopted the applicable provisions of the ASU prospectively. Accounting Pronouncements Not Yet Adopted In January 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) . The ASU eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation to the identified assets and liabilities of the reporting unit to measure goodwill impairment. Under the amendments in this update, a goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases . Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements but expects the ASU to have a material impact on its consolidated balance sheets, as a result of the requirement to recognize right-of-use assets and lease liabilities. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . The ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of the ASU to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2016. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company continues to evaluate the impact of adopting this standard and its subsequent related amendments and interpretations. However, based on our preliminary assessment, the Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. The Company has determined the adoption of the guidance will impact the timing of recognition of its stored value card breakage. Currently, breakage is recognized using the remote method and will be recognized using the proportional method upon adoption of the guidance. The Company is also evaluating principal versus agent conclusions as it relates to certain arrangements with third parties that could impact the presentation of revenue on a gross or net basis. The Company plans to adopt this ASU in the first quarter of fiscal 2018, and based on its initial assessment of potential impacts to its consolidated financial statements, the Company expects to use a modified retrospective approach to adoption.

Acquisitions

Acquisitions6 Months Ended
Aug. 04, 2017
Acquisitions
AcquisitionsNote 2 : Acquisitions - On June 23, 2017, the Company completed its acquisition of Maintenance Supply Headquarters, a leading distributor of maintenance, repair and operations (MRO) products serving the multifamily housing industry. The aggregate purchase price of this acquisition was $513 million , inclusive of cash acquired and $4 million of deferred components, and is included in the investing section of the consolidated statements of cash flows. The acquisition is expected to enable the Company to deepen and broaden its relationship with Pro customers and better serve their needs. Acquisition-related costs were expensed as incurred and were not significant. The following table summarizes the preliminary purchase price allocation: (In millions) June 23, 2017 Allocation: Cash acquired $ 4 Merchandise inventory - net 68 Other current assets 36 Property 12 Goodwill 160 Other assets 260 Accounts payable (18 ) Other current liabilities (9 ) Net assets acquired $ 513 Intangible assets acquired totaled $259 million , and include a trademark of $34 million with a useful life of 15 years and a customer list of $225 million with a useful life of 20 years, each of which are included in other assets in the accompanying consolidated balance sheets. The goodwill of $160 million is primarily attributable to the synergies expected to arise after the acquisition and is deductible for tax purposes.

Investment in Australian Joint

Investment in Australian Joint Venture6 Months Ended
Aug. 04, 2017
Investment in Australian Joint Venture
Investment in Australian Joint VentureNote 3 : Investment in Australian Joint Venture - During the second quarter of fiscal 2017, the Company completed the sale of our interest in the Australian joint venture with Woolworths Limited and received proceeds of $199 million , which is included in cash flows from investing activities in the accompanying consolidated statements of cash flows. The proceeds from the sale exceeded the carrying value of the investment and resulted in a gain of $96 million . The carrying value prior to the sale reflected the non-cash impairment charges taken in fiscal years 2015 and 2016. The gain is included in selling, general and administrative expense in the accompanying consolidated statements of current and retained earnings.

Fair Value Measurements

Fair Value Measurements6 Months Ended
Aug. 04, 2017
Fair Value Measurements
Fair Value MeasurementsNote 4 : Fair Value Measurements - Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: • Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities • Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly • Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The following table presents the Company’s financial assets measured at fair value on a recurring basis as of August 4, 2017 , July 29, 2016 , and February 3, 2017 . The fair values of these instruments approximated amortized costs. Fair Value Measurements at (In millions) Measurement Level August 4, 2017 July 29, 2016 February 3, 2017 Short-term investments: Available-for-sale securities Money market funds Level 1 $ 105 $ 25 $ 81 Certificates of deposit Level 1 14 95 15 Municipal obligations Level 2 — 42 4 Municipal floating rate obligations Level 2 — 6 — Total short-term investments $ 119 $ 168 $ 100 Long-term investments: Available-for-sale securities Municipal floating rate obligations Level 2 $ 357 $ 598 $ 359 Certificates of deposit Level 1 3 2 2 Municipal obligations Level 2 — 4 5 Total long-term investments $ 360 $ 604 $ 366 There were no transfers between Levels 1, 2 or 3 during any of the periods presented. When available, quoted prices were used to determine fair value. When quoted prices in active markets were available, investments were classified within Level 1 of the fair value hierarchy. When quoted prices in active markets were not available, fair values were determined using pricing models, and the inputs to those pricing models were based on observable market inputs. The inputs to the pricing models were typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis During the three and six months ended August 4, 2017 and July 29, 2016 , the Company had no significant measurements of assets and liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. Fair Value of Financial Instruments The Company’s financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and long-term debt and are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value for these items due to their short-term nature. The fair values of the Company’s unsecured notes were estimated using quoted market prices. The fair values of the Company’s mortgage notes were estimated using discounted cash flow analyses, based on the future cash outflows associated with these arrangements and discounted using the applicable incremental borrowing rate. Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding capitalized lease obligations, are as follows: August 4, 2017 July 29, 2016 February 3, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 15,206 $ 16,212 $ 14,956 $ 17,284 $ 14,321 $ 15,305 Mortgage notes (Level 2) 7 7 10 11 7 7 Long-term debt (excluding capitalized lease obligations) $ 15,213 $ 16,219 $ 14,966 $ 17,295 $ 14,328 $ 15,312

Restricted Investment Balances

Restricted Investment Balances6 Months Ended
Aug. 04, 2017
Restricted Investment Balances
Restricted Investment BalancesNote 5 : Restricted Investment Balances - Short-term and long-term investments include restricted balances pledged as collateral primarily for the Company’s extended protection plan program. Restricted balances included in short-term investments were $106 million at August 4, 2017 , $60 million at July 29, 2016 , and $81 million at February 3, 2017 . Restricted balances included in long-term investments were $350 million at August 4, 2017 , $332 million at July 29, 2016 , and $354 million at February 3, 2017 .

Property

Property6 Months Ended
Aug. 04, 2017
Property
PropertyNote 6 : Property - Property is shown net of accumulated depreciation of $17.0 billion at August 4, 2017 , $16.8 billion at July 29, 2016 , and $17.0 billion at February 3, 2017 .

Extended Protection Plans

Extended Protection Plans6 Months Ended
Aug. 04, 2017
Extended Protection Plans
Extended Protection PlansNote 7 : Extended Protection Plans - The Company sells separately-priced extended protection plan contracts under a Lowe’s-branded program for which the Company is self-insured. The Company recognizes revenue from extended protection plan sales on a straight-line basis over the respective contract term. Extended protection plan contract terms primarily range from one to four years from the date of purchase or the end of the manufacturer’s warranty, as applicable. Changes in deferred revenue for extended protection plan contracts are summarized as follows: Three Months Ended Six Months Ended (In millions) August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 Deferred revenue - extended protection plans, beginning of period $ 769 $ 726 $ 763 $ 729 Additions to deferred revenue 112 106 208 192 Deferred revenue recognized (91 ) (88 ) (181 ) (177 ) Deferred revenue - extended protection plans, end of period $ 790 $ 744 $ 790 $ 744 Incremental direct acquisition costs associated with the sale of extended protection plans are also deferred and recognized as expense on a straight-line basis over the respective contract term. Deferred costs associated with extended protection plan contracts were $19 million at August 4, 2017 , $18 million at July 29, 2016 , and $18 million at February 3, 2017 . The Company’s extended protection plan deferred costs are included in other assets (noncurrent) on the accompanying consolidated balance sheets. All other costs, such as costs of services performed under the contract, general and administrative expenses, and advertising expenses are expensed as incurred. The liability for extended protection plan claims incurred is included in other current liabilities on the consolidated balance sheets and was not material in any of the periods presented. Expenses for claims are recognized when incurred and totaled $40 million and $76 million for the three and six months ended August 4, 2017 , respectively, and $38 million and $68 million for the three and six months ended July 29, 2016 , respectively.

Long-Term Debt

Long-Term Debt6 Months Ended
Aug. 04, 2017
Long-Term Debt
Long-Term DebtNote 8 : Long-Term Debt - During the first quarter of fiscal 2017, the Company issued $3.0 billion of unsecured notes as follows: Issue Date Principal Amount (in millions) Maturity Date Fixed vs. Floating Interest Rate Discount (in millions) May 3, 2017 $ 1,500 May 2027 Fixed 3.100% $ 9 May 3, 2017 $ 1,500 May 2047 Fixed 4.050% $ 23 Interest on the notes issued in 2017 is payable semiannually in arrears in May and November of each year until maturity. The indenture governing the notes issued in 2017 contains a provision that allows the Company to redeem these notes at any time, in whole or in part, at specified redemption prices, plus accrued and unpaid interest, if any, to the date of redemption. The indenture also contains a provision that allows the holders of the notes to require the Company to repurchase all or any part of their notes if a change of control triggering event occurs. If elected under the change of control provisions, the repurchase of the notes will occur at a purchase price of 101% of the principal amount, plus accrued and unpaid interest, if any, on such notes to the date of purchase. The indenture governing the notes does not limit the aggregate principal amount of debt securities that the Company may issue and does not require the Company to maintain specified financial ratios or levels of net worth or liquidity. However, the indenture includes various restrictive covenants, none of which is expected to impact the Company’s liquidity or capital resources. Also during the first quarter, the Company completed a cash tender offer to purchase and retire $1.6 billion combined aggregate principal amount of its outstanding notes and recognized a loss on extinguishment of debt of $464 million .

Equity

Equity6 Months Ended
Aug. 04, 2017
Equity
EquityNote 9 : Equity - The Company has a share repurchase program that is executed through purchases made from time to time either in the open market, which may be made under pre-set trading plans meeting the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934, or through private off-market transactions. Shares purchased under the repurchase program are retired and returned to authorized and unissued status. On January 27, 2017, the Company’s Board of Directors authorized a $5.0 billion share repurchase program with no expiration, which was announced on the same day. As of August 4, 2017 , the Company had $2.6 billion remaining in its share repurchase program. In March 2017, the Company entered into an Accelerated Share Repurchase (ASR) agreement with a third-party financial institution to repurchase $500 million of the Company’s common stock. At inception, pursuant to the agreement, the Company paid $500 million to the financial institution using cash on hand, and took delivery of 5.3 million shares. The Company finalized the transaction and received an additional 0.8 million shares prior to the end of the first quarter. In May 2017, the Company entered into an ASR agreement with a third-party financial institution to repurchase $500 million of the Company’s common stock. At inception, pursuant to the agreement, the Company paid $500 million to the financial institution using cash on hand, and took delivery of 5.2 million shares. The Company finalized the transaction and received an additional 1.2 million shares prior to the end of the second quarter. Under the terms of each of the ASR agreements, upon settlement, the Company would either receive additional shares from the financial institution or be required to deliver additional shares or cash to the financial institution. The Company controlled its election to either deliver additional shares or cash to the financial institution and was subject to provisions which limited the number of shares the Company would be required to deliver. The final number of shares received upon settlement of each of the ASR agreements was determined with reference to the volume-weighted average price of the Company’s common stock over the term of the respective ASR agreement. The initial repurchase of shares under each of the agreements resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share. Each of the ASR agreements was accounted for as a treasury stock transaction and forward stock purchase contract. The par value of the shares received was recorded as a reduction to common stock with the remainder recorded as a reduction to capital in excess of par value and retained earnings. The forward stock purchase contract was considered indexed to the Company’s own stock and was classified as an equity instrument. During the three and six months ended August 4, 2017 , the Company also repurchased shares of its common stock through the open market totaling 9.4 million and 18.5 million shares, respectively, for a cost of $750 million and $1.5 billion , respectively. The Company also withholds shares from employees to satisfy either the exercise price of stock options exercised or the statutory withholding tax liability resulting from the vesting of share-based awards. Shares repurchased for the three and six months ended August 4, 2017 , and July 29, 2016 were as follows: Three Months Ended August 4, 2017 July 29, 2016 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 15.8 $ 1,250 14.8 $ 1,200 Shares withheld from employees — — — 1 Total share repurchases 15.8 $ 1,250 14.8 $ 1,201 1 Reductions of $1.2 billion and $1.1 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended August 4, 2017 and July 29, 2016 , respectively. Six Months Ended August 4, 2017 July 29, 2016 (In millions) Shares Cost 2 Shares Cost 2 Share repurchase program 31.0 $ 2,500 30.7 $ 2,399 Shares withheld from employees 0.2 15 0.7 53 Total share repurchases 31.2 $ 2,515 31.4 $ 2,452 2 Reductions of $2.4 billion and $2.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the six months ended August 4, 2017 and July 29, 2016 , respectively.

Earnings Per Share

Earnings Per Share6 Months Ended
Aug. 04, 2017
Earnings Per Share
Earnings Per ShareNote 10 : Earnings Per Share - The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a nonforfeitable right to receive dividends and, therefore, are considered to participate in undistributed earnings with common shareholders. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings per common share for the three and six months ended August 4, 2017 and July 29, 2016 : Three Months Ended Six Months Ended (In millions, except per share data) August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 Basic earnings per common share: Net earnings $ 1,419 $ 1,167 $ 2,021 $ 2,051 Less: Net earnings allocable to participating securities (6 ) (5 ) (8 ) (8 ) Net earnings allocable to common shares, basic $ 1,413 $ 1,162 $ 2,013 $ 2,043 Weighted-average common shares outstanding 841 883 849 890 Basic earnings per common share $ 1.68 $ 1.32 $ 2.37 $ 2.29 Diluted earnings per common share: Net earnings $ 1,419 $ 1,167 $ 2,021 $ 2,051 Less: Net earnings allocable to participating securities (6 ) (5 ) (8 ) (8 ) Net earnings allocable to common shares, diluted $ 1,413 $ 1,162 $ 2,013 $ 2,043 Weighted-average common shares outstanding 841 883 849 890 Dilutive effect of non-participating share-based awards 1 2 1 2 Weighted-average common shares, as adjusted 842 885 850 892 Diluted earnings per common share $ 1.68 $ 1.31 $ 2.37 $ 2.29 Stock options to purchase 1.0 million and 0.9 million shares of common stock were anti-dilutive for the three and six months ended August 4, 2017 , respectively. Stock options to purchase 0.7 million and 0.8 million shares of common stock were anti-dilutive for the three and six months ended July 29, 2016 , respectively.

Income Taxes

Income Taxes6 Months Ended
Aug. 04, 2017
Income Taxes
Income TaxesNote 11 : Income Taxes - The Company’s effective income tax rates were 36.2% and 36.0% for the three and six months ended August 4, 2017 , respectively, and 38.1% for both the three and six months ended July 29, 2016 . The lower effective income tax rates for the three and six months ended August 4, 2017 were primarily driven by the recognized gain on the sale of our interest in the Australian joint venture, which did not result in tax expense due to the reduction of a previously established deferred tax valuation allowance associated with previous losses on this investment. The lower effective income tax rate for the six months ended August 4, 2017 was also driven by the recognition of excess tax benefits related to share-based payments after the adoption of ASU 2016-09. See Note 1 to the consolidated financial statements included herein for more information regarding ASU 2016-09.

Supplemental Disclosure

Supplemental Disclosure6 Months Ended
Aug. 04, 2017
Supplemental Disclosure
Supplemental DisclosureNote 12 : Supplemental Disclosure Net interest expense is comprised of the following: Three Months Ended Six Months Ended (In millions) August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 Long-term debt $ 147 $ 152 $ 292 $ 286 Capitalized lease obligations 14 15 27 27 Interest income (5 ) (4 ) (8 ) (6 ) Interest capitalized (1 ) (1 ) (2 ) (2 ) Interest on tax uncertainties (1 ) — (1 ) 2 Other 5 4 11 16 Interest - net $ 159 $ 166 $ 319 $ 323 Supplemental disclosures of cash flow information: Six Months Ended (In millions) August 4, 2017 July 29, 2016 Cash paid for interest, net of amount capitalized $ 324 $ 298 Cash paid for income taxes - net $ 563 $ 1,028 Non-cash investing and financing activities: Non-cash property acquisitions, including assets acquired under capital lease $ 34 $ 47 Cash dividends declared but not paid $ 344 $ 309

Derivative Instruments

Derivative Instruments6 Months Ended
Aug. 04, 2017
Derivative Instruments
Derivative InstrumentsNote 13 : Derivative Instruments - In February 2016, the Company entered into an option to purchase 3.2 billion Canadian dollars in order to manage the foreign currency exchange rate risk on the consideration to be paid for the acquisition of RONA inc. This option contract was not eligible to be accounted for as a hedging instrument, and gains and losses resulting from changes in fair value and settlement were included in selling, general and administrative expense in the accompanying consolidated statements of current and retained earnings. The cash flows related to this option were included within investing activities in the accompanying consolidated statements of cash flows. The premium paid for the foreign currency exchange option contract was $103 million , and the option contract was settled for $179 million during the three months ended July 29, 2016. The Company recorded a loss of $84 million during the three months ended July 29, 2016, which represented the decrease from the fair value recorded at April 29, 2016, and a total realized gain of $76 million on the foreign currency exchange option contract during the six months ended July 29, 2016 . The Company’s other derivative instruments and related activity were not material in any of the periods presented.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)6 Months Ended
Aug. 04, 2017
Summary of Significant Accounting Policies
Basis of PresentationBasis of Presentation The accompanying consolidated financial statements (unaudited) and notes to the consolidated financial statements (unaudited) are presented in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The consolidated financial statements (unaudited), in the opinion of management, contain all adjustments necessary to present fairly the financial position as of August 4, 2017 , and July 29, 2016 , and the results of operations, comprehensive income for the three and six months ended August 4, 2017 , and July 29, 2016 , and cash flows for the six months ended August 4, 2017 and July 29, 2016 . These interim consolidated financial statements (unaudited) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Lowe’s Companies, Inc. (the Company) Annual Report on Form 10-K for the fiscal year ended February 3, 2017 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year.
ReclassificationsReclassifications Certain prior period amounts have been reclassified to conform to current presentation.
Recent Accounting PronouncementsAccounting Pronouncements Recently Adopted Effective February 4, 2017, the Company adopted Accounting Standards Update (ASU 2016-09), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . Upon adoption of the ASU, all excess tax benefits or deficiencies related to share-based payments are recognized in the provision for income taxes, which will increase the volatility within our provision for income taxes, as these amounts were previously reported within equity. As a result of the adoption, we have recognized $1 million and $24 million of excess tax benefits in our provision for income taxes for the three and six months ended August 4, 2017 , respectively. The recognition of these benefits contributed $0.03 to diluted earnings per share for the six months ended August 4, 2017. Excess tax benefits were historically reflected as a financing activity in the statements of cash flows, and after adoption, are included within operating activities. Cash paid to tax authorities by the Company when directly withholding shares for tax purposes will continue to be classified as a financing activity in the statement of cash flows. Share-based payment expense will continue to reflect estimated forfeitures of share-based payment awards. The Company has adopted the applicable provisions of the ASU prospectively. Accounting Pronouncements Not Yet Adopted In January 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) . The ASU eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation to the identified assets and liabilities of the reporting unit to measure goodwill impairment. Under the amendments in this update, a goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases . Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements but expects the ASU to have a material impact on its consolidated balance sheets, as a result of the requirement to recognize right-of-use assets and lease liabilities. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . The ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of the ASU to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2016. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company continues to evaluate the impact of adopting this standard and its subsequent related amendments and interpretations. However, based on our preliminary assessment, the Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. The Company has determined the adoption of the guidance will impact the timing of recognition of its stored value card breakage. Currently, breakage is recognized using the remote method and will be recognized using the proportional method upon adoption of the guidance. The Company is also evaluating principal versus agent conclusions as it relates to certain arrangements with third parties that could impact the presentation of revenue on a gross or net basis. The Company plans to adopt this ASU in the first quarter of fiscal 2018, and based on its initial assessment of potential impacts to its consolidated financial statements, the Company expects to use a modified retrospective approach to adoption.

Acquisitions (Tables)

Acquisitions (Tables)6 Months Ended
Aug. 04, 2017
Acquisitions
AcquisitionsThe following table summarizes the preliminary purchase price allocation: (In millions) June 23, 2017 Allocation: Cash acquired $ 4 Merchandise inventory - net 68 Other current assets 36 Property 12 Goodwill 160 Other assets 260 Accounts payable (18 ) Other current liabilities (9 ) Net assets acquired $ 513

Fair Value Measurements (Tables

Fair Value Measurements (Tables)6 Months Ended
Aug. 04, 2017
Fair Value Measurements
Fair value measurements - recurring basisThe following table presents the Company’s financial assets measured at fair value on a recurring basis as of August 4, 2017 , July 29, 2016 , and February 3, 2017 . The fair values of these instruments approximated amortized costs. Fair Value Measurements at (In millions) Measurement Level August 4, 2017 July 29, 2016 February 3, 2017 Short-term investments: Available-for-sale securities Money market funds Level 1 $ 105 $ 25 $ 81 Certificates of deposit Level 1 14 95 15 Municipal obligations Level 2 — 42 4 Municipal floating rate obligations Level 2 — 6 — Total short-term investments $ 119 $ 168 $ 100 Long-term investments: Available-for-sale securities Municipal floating rate obligations Level 2 $ 357 $ 598 $ 359 Certificates of deposit Level 1 3 2 2 Municipal obligations Level 2 — 4 5 Total long-term investments $ 360 $ 604 $ 366 There were no transfers between Levels 1, 2 or 3 during any of the periods presented.
Fair value of financial instrumentsCarrying amounts and the related estimated fair value of the Company’s long-term debt, excluding capitalized lease obligations, are as follows: August 4, 2017 July 29, 2016 February 3, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 15,206 $ 16,212 $ 14,956 $ 17,284 $ 14,321 $ 15,305 Mortgage notes (Level 2) 7 7 10 11 7 7 Long-term debt (excluding capitalized lease obligations) $ 15,213 $ 16,219 $ 14,966 $ 17,295 $ 14,328 $ 15,312

Extended Protection Plans (Tabl

Extended Protection Plans (Tables)6 Months Ended
Aug. 04, 2017
Extended Protection Plans
Changes in deferred revenue for extended protection plan contractsChanges in deferred revenue for extended protection plan contracts are summarized as follows: Three Months Ended Six Months Ended (In millions) August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 Deferred revenue - extended protection plans, beginning of period $ 769 $ 726 $ 763 $ 729 Additions to deferred revenue 112 106 208 192 Deferred revenue recognized (91 ) (88 ) (181 ) (177 ) Deferred revenue - extended protection plans, end of period $ 790 $ 744 $ 790 $ 744

Long-Term Debt (Tables)

Long-Term Debt (Tables)6 Months Ended
Aug. 04, 2017
Long-Term Debt
Schedule of unsecured notes issued in fiscal 2017During the first quarter of fiscal 2017, the Company issued $3.0 billion of unsecured notes as follows: Issue Date Principal Amount (in millions) Maturity Date Fixed vs. Floating Interest Rate Discount (in millions) May 3, 2017 $ 1,500 May 2027 Fixed 3.100% $ 9 May 3, 2017 $ 1,500 May 2047 Fixed 4.050% $ 23

Equity (Tables)

Equity (Tables)6 Months Ended
Aug. 04, 2017
Equity
Schedule of share repurchasesShares repurchased for the three and six months ended August 4, 2017 , and July 29, 2016 were as follows: Three Months Ended August 4, 2017 July 29, 2016 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 15.8 $ 1,250 14.8 $ 1,200 Shares withheld from employees — — — 1 Total share repurchases 15.8 $ 1,250 14.8 $ 1,201 1 Reductions of $1.2 billion and $1.1 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended August 4, 2017 and July 29, 2016 , respectively. Six Months Ended August 4, 2017 July 29, 2016 (In millions) Shares Cost 2 Shares Cost 2 Share repurchase program 31.0 $ 2,500 30.7 $ 2,399 Shares withheld from employees 0.2 15 0.7 53 Total share repurchases 31.2 $ 2,515 31.4 $ 2,452 2 Reductions of $2.4 billion and $2.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the six months ended August 4, 2017 and July 29, 2016 , respectively.

Earnings Per Share (Tables)

Earnings Per Share (Tables)6 Months Ended
Aug. 04, 2017
Earnings Per Share
Schedule of earnings per share, basic and dilutedThe following table reconciles earnings per common share for the three and six months ended August 4, 2017 and July 29, 2016 : Three Months Ended Six Months Ended (In millions, except per share data) August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 Basic earnings per common share: Net earnings $ 1,419 $ 1,167 $ 2,021 $ 2,051 Less: Net earnings allocable to participating securities (6 ) (5 ) (8 ) (8 ) Net earnings allocable to common shares, basic $ 1,413 $ 1,162 $ 2,013 $ 2,043 Weighted-average common shares outstanding 841 883 849 890 Basic earnings per common share $ 1.68 $ 1.32 $ 2.37 $ 2.29 Diluted earnings per common share: Net earnings $ 1,419 $ 1,167 $ 2,021 $ 2,051 Less: Net earnings allocable to participating securities (6 ) (5 ) (8 ) (8 ) Net earnings allocable to common shares, diluted $ 1,413 $ 1,162 $ 2,013 $ 2,043 Weighted-average common shares outstanding 841 883 849 890 Dilutive effect of non-participating share-based awards 1 2 1 2 Weighted-average common shares, as adjusted 842 885 850 892 Diluted earnings per common share $ 1.68 $ 1.31 $ 2.37 $ 2.29

Supplemental Disclosure (Tables

Supplemental Disclosure (Tables)6 Months Ended
Aug. 04, 2017
Supplemental Disclosure
Net interest expenseNet interest expense is comprised of the following: Three Months Ended Six Months Ended (In millions) August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 Long-term debt $ 147 $ 152 $ 292 $ 286 Capitalized lease obligations 14 15 27 27 Interest income (5 ) (4 ) (8 ) (6 ) Interest capitalized (1 ) (1 ) (2 ) (2 ) Interest on tax uncertainties (1 ) — (1 ) 2 Other 5 4 11 16 Interest - net $ 159 $ 166 $ 319 $ 323
Supplemental disclosures of cash flow informationSupplemental disclosures of cash flow information: Six Months Ended (In millions) August 4, 2017 July 29, 2016 Cash paid for interest, net of amount capitalized $ 324 $ 298 Cash paid for income taxes - net $ 563 $ 1,028 Non-cash investing and financing activities: Non-cash property acquisitions, including assets acquired under capital lease $ 34 $ 47 Cash dividends declared but not paid $ 344 $ 309

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax provision $ 804 $ 718 $ 1,137 $ 1,264
Diluted earnings per common share $ 1.68 $ 1.31 $ 2.37 $ 2.29
Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax provision $ (1) $ (24)
Diluted earnings per common share $ 0.03

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in MillionsAug. 04, 2017Jun. 23, 2017Feb. 03, 2017Jul. 29, 2016
Allocation:
Goodwill $ 1,255 $ 1,082 $ 1,074
Maintenance Supply Headquarters
Allocation:
Cash acquired $ 4
Merchandise inventory - net68
Other current assets36
Property12
Goodwill160
Other assets260
Accounts payable(18)
Other current liabilities(9)
Net assets acquired $ 513

Acquisitions (Details Textual)

Acquisitions (Details Textual) - Maintenance Supply Headquarters $ in MillionsJun. 23, 2017USD ($)
Business Acquisition [Line Items]
Consideration transferred $ 513
Deferred payment of consideration in cash4
Intangible assets acquired259
Goodwill expected to be tax deductible160
Trademark
Business Acquisition [Line Items]
Intangible assets acquired $ 34
Useful life of intangible assets acquired15 years
Customer List
Business Acquisition [Line Items]
Intangible assets acquired $ 225
Useful life of intangible assets acquired20 years

Investment in Australian Join33

Investment in Australian Joint Venture (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Aug. 04, 2017Aug. 04, 2017Jul. 29, 2016
Investment in Australian Joint Venture
Proceeds from sale/maturity of investments $ 789 $ 431
Hydrox Holdings Pty Ltd.
Investment in Australian Joint Venture
Proceeds from sale/maturity of investments $ 199
Cost method investments, realized gains $ 96

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - Estimate of Fair Value - USD ($) $ in MillionsAug. 04, 2017Feb. 03, 2017Jul. 29, 2016
Short-term Investments
Assets, Fair Value Disclosure
Available-for-sale securities, fair value $ 119 $ 100 $ 168
Short-term Investments | Money Market Funds | Fair Value (Level 1)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value105 81 25
Short-term Investments | Certificates Of Deposit | Fair Value (Level 1)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value14 15 95
Short-term Investments | Municipal Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value0 4 42
Short-term Investments | Municipal Floating Rate Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value0 0 6
Long-term Investments
Assets, Fair Value Disclosure
Available-for-sale securities, fair value360 366 604
Long-term Investments | Certificates Of Deposit | Fair Value (Level 1)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value3 2 2
Long-term Investments | Municipal Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value0 5 4
Long-term Investments | Municipal Floating Rate Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value $ 357 $ 359 $ 598

Fair Value Measurements (Deta35

Fair Value Measurements (Details 1) - USD ($) $ in MillionsAug. 04, 2017Feb. 03, 2017Jul. 29, 2016
Financial Instruments
Long-term debt carrying value (excluding capitalized lease obligations) $ 15,213 $ 14,328 $ 14,966
Unsecured Notes
Financial Instruments
Long-term debt carrying value (excluding capitalized lease obligations)15,206 14,321 14,956
Mortgage Notes
Financial Instruments
Long-term debt carrying value (excluding capitalized lease obligations)7 7 10
Estimate of Fair Value
Financial Instruments
Long-term debt fair value (excluding capitalized lease obligations)16,219 15,312 17,295
Estimate of Fair Value | Unsecured Notes | Fair Value (Level 1)
Financial Instruments
Long-term debt fair value (excluding capitalized lease obligations)16,212 15,305 17,284
Estimate of Fair Value | Mortgage Notes | Fair Value (Level 2)
Financial Instruments
Long-term debt fair value (excluding capitalized lease obligations) $ 7 $ 7 $ 11

Restricted Investment Balances

Restricted Investment Balances (Details) - USD ($) $ in MillionsAug. 04, 2017Feb. 03, 2017Jul. 29, 2016
Restricted Investment Balances
Restricted balances included in short-term investments $ 106 $ 81 $ 60
Restricted balances included in long-term investments $ 350 $ 354 $ 332

Property (Details)

Property (Details) - USD ($) $ in BillionsAug. 04, 2017Feb. 03, 2017Jul. 29, 2016
Property
Accumulated depreciation $ 17 $ 17 $ 16.8

Extended Protection Plans (Deta

Extended Protection Plans (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Changes in deferred revenue for extended protection plan contracts
Deferred revenue - extended protection plans, beginning of period $ 769 $ 726 $ 763 $ 729
Additions to deferred revenue112 106 208 192
Deferred revenue recognized(91)(88)(181)(177)
Deferred revenue - extended protection plans, end of period $ 790 $ 744 $ 790 $ 744

Extended Protection Plans (De39

Extended Protection Plans (Details Textual) - USD ($) $ in Millions3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016Feb. 03, 2017
Extended Protection Plans
Deferred costs associated with extended protection plan contracts $ 19 $ 18 $ 19 $ 18 $ 18
Expenses for claims incurred $ 40 $ 38 $ 76 $ 68

Long-Term Debt (Details)

Long-Term Debt (Details) $ in Millions3 Months Ended
May 05, 2017USD ($)
Long-Term Debt
Unsecured notes, issued $ 3,000
2027 Fixed Rate Notes
Long-Term Debt
Unsecured notes, issued $ 1,500
Unsecured notes, maturity dateMay 31,
2027
Unsecured notes, interest rate3.10%
Unamortized discount $ 9
2047 Fixed Rate Notes
Long-Term Debt
Unsecured notes, issued $ 1,500
Unsecured notes, maturity dateMay 31,
2047
Unsecured notes, interest rate4.05%
Unamortized discount $ 23

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual) - USD ($) $ in Millions3 Months Ended6 Months Ended
Aug. 04, 2017May 05, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Long-Term Debt
Debt instrument, repurchased face amount $ 1,600
Loss on extinguishment of debt $ 0 $ 464 $ 0 $ 464 $ 0
2017 Debt Issuance
Long-Term Debt
Debt instrument, redemption price, percentage101.00%

Equity (Details)

Equity (Details) - USD ($) shares in Millions, $ in Millions3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Equity
Reduction in retained earnings $ 1,168 $ 1,093 $ 2,366 $ 2,245
Share Repurchases
Share repurchases, value $ 1,250 [1] $ 1,201 [1] $ 2,515 [2] $ 2,452 [2]
Share repurchases, shares15.8 14.8 31.2 31.4
Share Repurchase Program
Share Repurchases
Share repurchases, value $ 1,250 [1] $ 1,200 [1] $ 2,500 [2] $ 2,399 [2]
Share repurchases, shares15.8 14.8 31 30.7
Shares Withheld from Employees
Share Repurchases
Share repurchases, value $ 0 [1] $ 1 [1] $ 15 [2] $ 53 [2]
Share repurchases, shares0 0 0.2 0.7
[1]Reductions of $1.2 billion and $1.1 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended August 4, 2017 and July 29, 2016, respectively.
[2]Reductions of $2.4 billion and $2.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the six months ended August 4, 2017 and July 29, 2016, respectively.

Equity (Details Textual)

Equity (Details Textual) - USD ($) shares in MillionsMay 31, 2017Mar. 31, 2017Aug. 04, 2017May 05, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016Jan. 27, 2017
Share Repurchases
Share repurchases, value $ 1,250,000,000 [1] $ 1,201,000,000 [1] $ 2,515,000,000 [2] $ 2,452,000,000 [2]
Share repurchases, shares15.8 14.8 31.2 31.4
Cash used to repurchase shares $ 2,503,000,000 $ 2,454,000,000
Share Repurchase Program
Share Repurchases
Share repurchases, value $ 1,250,000,000 [1] $ 1,200,000,000 [1] $ 2,500,000,000 [2] $ 2,399,000,000 [2]
Share repurchases, shares15.8 14.8 31 30.7
Remaining share repurchases authorization, value $ 2,600,000,000 $ 2,600,000,000
January 27, 2017 Share Repurchase Authorization
Share Repurchases
Share repurchases authorized, value $ 5,000,000,000
March 2017 Accelerated Share Repurchase Agreement Purchases
Share Repurchases
Share repurchases, value $ 500,000,000
Share repurchases, shares5.3 0.8
Cash used to repurchase shares $ 500,000,000
May 2017 Accelerated Share Repurchase Agreement Purchases
Share Repurchases
Share repurchases, value $ 500,000,000
Share repurchases, shares5.2 1.2
Cash used to repurchase shares $ 500,000,000
Open market purchases
Share Repurchases
Share repurchases, value $ 750,000,000 $ 1,500,000,000
Share repurchases, shares9.4 18.5
[1]Reductions of $1.2 billion and $1.1 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended August 4, 2017 and July 29, 2016, respectively.
[2]Reductions of $2.4 billion and $2.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the six months ended August 4, 2017 and July 29, 2016, respectively.

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Basic earnings per common share:
Net earnings $ 1,419 $ 1,167 $ 2,021 $ 2,051
Less: Net earnings allocable to participating securities(6)(5)(8)(8)
Net earnings allocable to common shares, basic $ 1,413 $ 1,162 $ 2,013 $ 2,043
Weighted-average common shares outstanding841 883 849 890
Basic earnings per common share $ 1.68 $ 1.32 $ 2.37 $ 2.29
Diluted earnings per common share:
Net earnings $ 1,419 $ 1,167 $ 2,021 $ 2,051
Less: Net earnings allocable to participating securities(6)(5)(8)(8)
Net earnings allocable to common shares, diluted $ 1,413 $ 1,162 $ 2,013 $ 2,043
Weighted-average common shares outstanding841 883 849 890
Dilutive effect of non-participating share-based awards1 2 1 2
Weighted-average common shares, as adjusted842 885 850 892
Diluted earnings per common share $ 1.68 $ 1.31 $ 2.37 $ 2.29

Earnings Per Share (Details Tex

Earnings Per Share (Details Textual) - shares shares in Millions3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Earnings Per Share
Anti-dilutive securities1 0.7 0.9 0.8

Income Taxes (Details)

Income Taxes (Details)3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Income Taxes
Effective income tax rate36.20%38.10%36.00%38.10%

Supplemental Disclosure (Detail

Supplemental Disclosure (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Aug. 04, 2017Jul. 29, 2016Aug. 04, 2017Jul. 29, 2016
Net interest expense
Long-term debt $ 147 $ 152 $ 292 $ 286
Capitalized lease obligations14 15 27 27
Interest income(5)(4)(8)(6)
Interest capitalized(1)(1)(2)(2)
Interest on tax uncertainties(1)0 (1)2
Other5 4 11 16
Interest - net $ 159 $ 166 $ 319 $ 323

Supplemental Disclosure (Deta48

Supplemental Disclosure (Details 1) - USD ($) $ in Millions6 Months Ended
Aug. 04, 2017Jul. 29, 2016
Supplemental disclosures of cash flow information
Cash paid for interest, net of amount capitalized $ 324 $ 298
Cash paid for income taxes, net563 1,028
Non-cash investing and financing activities:
Non-cash property acquisitions, including assets acquired under capital lease34 47
Cash dividends declared but not paid $ 344 $ 309

Derivative Instruments (Details

Derivative Instruments (Details) $ in Millions, CAD in Billions3 Months Ended6 Months Ended
Jul. 29, 2016USD ($)Aug. 04, 2017USD ($)Jul. 29, 2016USD ($)Feb. 29, 2016CAD
Derivative Instruments
Purchases of derivative instruments $ 0 $ 103
Proceeds from settlement of derivative instruments $ 0 179
Foreign Exchange Option | Not Designated as Hedging Instrument
Derivative Instruments
Derivative asset, notional amount | CAD CAD 3.2
Purchases of derivative instruments103
Proceeds from settlement of derivative instruments179
Gain (loss) on derivative, net $ (84) $ 76